• An establishment above 38.2% Fibo retracement advocates a bullish reversal.
• The asset is advancing higher in a Rising Channel chart pattern.
• A bullish range shift by the RSI (14) adds to the upside filters.

The AUD/USD pair is displaying back and forth moves in a narrow range of 0.7176-0.7189 after a minor rebound from intraday’s low at 0.7162.  Earlier, the asset witnessed a steep fall after failing to sustain above the round-level resistance of 0.7200. Multiple failed attempts of overstepping Tuesday’s high at 0.7200 triggered exhaustion in the uptrend, which activated responsive sellers.

On a four-hour scale, the aussie bulls have driven the asset above 38.2% Fibonacci retracement (placed from May’s high and low at 0.7662 and 0.6829 respectively) at 0.7149. An establishment above 38.2% Fibo retracement bolsters a bullish reversal. The asset is advancing higher in a Rising Channel, which signals a continuation of the bullish momentum.

Considering the lower gap between the 50- and 200-period Exponential Moving Averages (EMAs), a golden cross near 0.7150 looks possible, which will strengthen the aussie bulls further.

Meanwhile, the Relative Strength Index (RSI) (14) has comfortably shifted into a bullish range of 60.00-80.00, which adds to the upside filters.

A minor correction towards the 38.2% Fibo retracement at 0.7150 will be an optimal buy, which will drive the asset towards Monday’s high at 0.7200. A breach of the latter will expose the asset for a further upside move to 50% Fibo retracement at 0.7250.

Alternatively, the greenback bulls could regain control if the asset drops below May 26 low at 0.7056. An occurrence of the same will drag the asset towards May 20 low at 0.7003, followed by May 15 low at 0.6948.

AUD/USD four-hour chart